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Mobile homes are housing units installed on a permanent foundation owned by a landlord. Although a resident owns the home, she rents the foundation from the landlord. In theory, owners of mobile homes can transfer their home to a different foundation if the rent becomes too steep, but uninstalling, transporting, and reinstalling the mobile home is usually prohibitively expensive. This “lock-in” effect encourages state legislatures to create rent controls for mobile home foundations. Which would MOST LIKELY result after setting a price ceiling on automobiles?
A. fewer safety features
B. more friendly automobile salesman
C. an increase in demand for automobiles
D. a surplus of automobiles
Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 15 billion cases of beer were sold every year at a price of $7 per case. After the tax, 9 billion cases of beer are sold every year; consumers pay $10 per case (..
An investment currently costs $30,000 if the current inflation rate is 3% and the effective annual return on investment is 8%. Approximately how long will it take the future value to reach $45,000?
If the actual budget deficit is $200 billion, the economy is operating $450 billion above its potential, and the marginal tax rate is 14 percent, what are the structural deficit or surplus and the cyclical deficit or surplus?
A new advertising campaign by a company that manufactures products that rely on biometrics, surveillance, and satellite technologies resulted in the cash flows shown. Determine the EROR. using both the MIRR and ROIC with i_r = 30% per year for the RO..
Two drivers—Walt and Jessie—each drive up to a gas station. Before looking at the price, each places an order. Walt says, “I’d like 10 gallons of gas.” Jessie says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand?
A manufacturing company produces steel housings for electrical equipment. The main component part of the housing is a steel trough that is made out of a 14-gauge steel coil. Construct a frequency distribution and a percentage distribution. Construct ..
Other things equal, increasing home prices tend to:
A firm faces a demand where q=20-P. q is quantity demanded, P is price. Its total cost function is TC = 2q^2 + 2q + 20. How many should it produce to maximize profit? What is the price it charges to its consumers?
Three firms produce an identical product. The market demand is as follows: q(p) = Qo if p ≤ 2, q(p) = 0 if p > 2. Production costs are zero for all firms. Each firm has a capacity constraint of 5 units. In each period firms set their prices for that ..
Draw a set of coordinate axes on a piece of graph paper. label the horizontal axis from 0 to 5 units and the vertica axis from $0 to $20 per unit. draw a demand curve that intersect that vertical at $10 and horizontal axis at 40 units
Rexall Industries is planning to expand sales of its line of drilling machines to the mid-west. We hoped one of our existing salespeople would be willing to take over the new territory. However, they have all turned it down. So, we’re going to have t..
q.assume the followingi. the public holds no currency.ii. the ratio of reserves to deposits is 0.1.iii. the demand for
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